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Motorcycle insurance in Singapore Your handy guide

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Just when you think you’ve paid enough to be a motorcyclist in Singapore, there is also the mandate that your motorcycle must have a valid insurance policy that covers at least third-party liability for death and bodily injury arising from the use of the vehicle.

Third party only motorbike insurance

The simplest and cheapest policy that satisfies the law is sold as Third Party Only, and covers what it says: bodily injury or death to other people caused by an accident involving your motorcycle and damage to other people’s property.

What motorcycle third party only insurance doesn’t cover is any damage to your bike as a result of an accident.

Before bemoaning the outgoings that even this basic coverage entails, stop and picture yourself running into the side of a Rolls-Royce and the potential cost of its repair. That annual premium doesn’t look so expensive now, does it? Particularly if you shop around for the best deal.

But wait…

Stopping to consider the risks of motorcycle ownership when purchasing insurance will inevitably lead to a desire for more extensive coverage. One popular choice for a small extra premium is Third Party Fire and Theft, a policy that covers everything in your basic motorcycle Third Party Only insurance policy as well as the market value of your motorcycle in case it is stolen or written off by fire.

Comprehensive motorbike insurance policy

And finally, a motorbike Comprehensive insurance policy covers all of the above, as well as any damage to your own motorcycle. Obviously this is the policy that gives you the greatest peace-of-mind, and of course it also is the one that comes with the highest premium.

Also, because it offers full coverage, this is likely to be the type of policy a bank or finance company will insist on if you’re aiming to borrow the money to purchase a motorcycle.

Premium payment for premium coverage

As in everything in life, you get what you pay for. Insurance is all about sharing risk, and insurance companies use some (sometimes baffling to customers) mathematical probabilities to calculate premiums. There are some obvious things that will affect how much you pay:

  • The more expensive the motorcycle, and the more difficult or expensive it is to repair, the higher those insurance premiums for Fire and Theft and Comprehensive are going to be.
  • Small-capacity commuting motorcycles represent less of a risk than litre-plus supersports machines, and will be cheaper to insure.
  • Less experienced riders represent more of a risk, so will pay more.
  • Riders who don’t make claims are a lower risk, so insurers will offer a scaled No Claim Discount after a period of insurance cover without claims.

Motorbike usage

Riders who spend more time on the roads are a higher risk, so the insurance company is likely to ask what the motorcycle is being used for and adjust accordingly.

The classes of use are likely to include Private and Commuting Use, Private and Occasional Business Use, and Private and Business Use, amongst others. Obviously, the latter will attract higher premiums. If you’re insuring a motorcycle to be used for food delivery or courier service, the premiums will be proportionately higher. Note that some insurers, including Budget Direct Insurance, do not provide cover for these commercial uses (e.g. riders for GrabFood, foodpanda, Deliveroo, etc.) in order to keep premiums for other riders low.

Be aware that any misrepresentation will void your cover.

Motorbike insurance excess

Your insurer may also offer lower premiums if you’re willing to bear some of the risk.

The ‘excess’ is the sum that you are expected to pay before the insurance company will pay a claim (i.e. If your policy has an excess of $500, and there is insurable damage to your motorcycle of $5,000, you will pay $500, and the insurer with pay $4,500). The higher the excess, the lower the insurance premium should be.

Be aware that if there is an excess for individual conditions of the insurance, they are likely to be additional: if the policy has a $500 excess, and there’s a ‘named rider below 25 years old’ excess of $500, the total excess is $1000. For more

Budget Direct Insurance
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